Bitter Medicine in Store for Activists

As Hedge Funds Step Up Their Hunt for New Targets, Companies Are Bolstering Their Defenses

By

Liz Hoffman

Jan. 28, 2014 7:25 p.m. ET

As activist hedge funds step up their hunt for new targets, companies are bolstering their defenses.

Some are fortifying their poison-pill provisions—measures that prevent an unwanted shareholder from taking a stake above a certain level. Others are speeding up their acquisition timetables to minimize interference from shareholders. And some are tightening rules for nominating board members to make it harder for activists to get...